PSX falls 903 points as Middle East tensions keep investors cautious

KARACHI: The Pakistan Stock Exchange came under fresh selling pressure on Wednesday, with the benchmark KSE-100 index losing 903.12 points as investors booked profits amid a worsening situation in the Middle East and a rise in oil prices.

The benchmark failed to hold on to overnight gains above the 170,000-point level and closed at 169,427.44, down 0.53 per cent. Trading remained volatile throughout the session as investors responded to sharp shifts in market sentiment. The index recorded an intraday high of 399 points and an intraday low of 984 points, underlining uncertainty and caution in the market.

Volatile session

Repeated attempts at recovery during the day could not be sustained, as selling pressure in major sectors kept the market under strain. The broad intraday range showed a contest between limited optimism and lingering concerns, while investors weighed macroeconomic signals and positioned themselves ahead of key triggers.

On the index contribution side, Meezan Bank, International Steels Ltd, Pakistan Oilfield, International Industries Ltd and Interloop Ltd together added 183 points. In contrast, Bank Al-Habib, United Bank, MCB Bank, Engro Holdings and Oil and Gas Development Company collectively dragged the benchmark down by 464 points.

Geopolitical concerns weigh on sentiment

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said trading activity was mixed as investor confidence stayed subdued following renewed overnight tensions between the United States and Iran. He said uncertainty surrounding geopolitical developments kept market momentum fragile, prompting many investors to stay cautious and remain largely on the sidelines.

Analysts viewed geopolitical developments as the main factor shaping the market. They said investor sentiment was likely to remain cautious until there was greater clarity on the US-Iran situation, with market direction expected to depend largely on regional developments and risk assessments.

Remittances provide macro support

On the economic front, workers’ remittances rose 15 per cent year-on-year and 20 per cent month-on-month to $4.3 billion in May. For the first 11 months of FY26, cumulative remittances increased 9 per cent to $38.1 billion, offering continued support to Pakistan’s external account position.

Market participation remained firm, with trading volume increasing 3.15 per cent to 791.6 million shares. However, turnover declined 6.22 per cent to Rs25.4 billion. TPL Properties led the volume chart with 64 million shares traded.